Analysing the Performance of Stocks in International Finance

Running head: INTERNATIONAL FINANCE
International Finance
Name of the Student:
Name of the University:
Authors Note:

INTERNATIONAL FINANCE
1
Table of Contents
1.a) Percentage change in stock price of companies:.................................................................2
1.b) Analysing the performance of the portfolio:.......................................................................3
2) Analysing the performance of Wesfarmers and Woolworths with Australian market:.........4
3.a) Analysing the performance of AIZ and GNE with New Zealand Index:...........................5
3.b) Detecting correlation between AIZ and GNE:..................................................................6
3.c) Analysing whether AIZ and GNE performance is driven by the Australian market:.........7
4.a) Understanding the implication of USD/AUD on valuation of WES:.................................8
4.b) Understanding the implication of USD/AUD on valuation of WOW:...............................9
5.a) Understanding the implication of NZD/AUD on valuation AIZ:.......................................9
5.b) Understanding the implication of NZD/AUD on valuation GNE:...................................10
References:...............................................................................................................................11

INTERNATIONAL FINANCE
2
1.a) Percentage change in stock price of companies:
Name of the Company Stock price at end of the week % Change News (Primary reason)
Wesfarmers Limited 31.890 0.950% Analyst viewing shares progress
Woolworths Group Limited 29.240 1.669% Annual general meeting was held
Air New Zealand Limited 2.850 1.786% Reduction in oil prices
Genesis Energy Limited 2.320 -2.521% Presentation provided by Genesis
Portfolio Average 0.471%
Name of the Company Stock price at end of the week % Change News (Primary reason)
Wesfarmers Limited 31.590 -0.941% Market conditions applied
Woolworths Group Limited 28.920 -1.094% Market conditions applied
Air New Zealand Limited 2.910 2.105% Reduction in oil prices
Genesis Energy Limited 2.360 1.724% Ongoing Disclosures
Portfolio Average 0.449%
Name of the Company Stock price at end of the week % Change News (Primary reason)
Wesfarmers Limited 31.950 1.140% Analyst viewing shares progress
Woolworths Group Limited 29.230 1.072% Analyst regarding the earnings report
Air New Zealand Limited 2.880 -1.031% Fundamental report disclosure
Genesis Energy Limited 2.400 1.695% Ongoing Disclosures notice
Portfolio Average 0.719%
Name of the Company Stock price at end of the week % Change News (Primary reason)
Wesfarmers Limited 31.280 -2.097% Market conditions applied
Woolworths Group Limited 28.310 -3.147% Woolworths boycott by customers
Air New Zealand Limited 2.830 -1.736% Slugish earnings growth
Genesis Energy Limited 2.450 2.083% Ongoing Disclosures notice
Portfolio Average -1.224%
Name of the Company Stock price at end of the week % Change News (Primary reason)
Wesfarmers Limited 31.430 0.480% Rising performance than Coles
Woolworths Group Limited 28.670 1.272% New marketing strategy adopted
Air New Zealand Limited 3.010 6.360% Reduction in oil prices
Genesis Energy Limited 2.440 -0.408% D&O Ongoing Disclosure Notices - Multiple
Portfolio Average 1.926%
Name of the Company Stock price at end of the week % Change News (Primary reason)
Wesfarmers Limited 32.530 3.500% Market conditions applied
Woolworths Group Limited 29.550 3.069% Analyst report on the finanical strength
Air New Zealand Limited 3.000 -0.332% Market conditions applied
Genesis Energy Limited 2.500 2.459% Market conditions applied
Portfolio Average 2.174%
Name of the Company Stock price at end of the week % Change News (Primary reason)
Wesfarmers Limited 32.080 -1.383% Market conditions applied
Woolworths Group Limited 29.300 -0.846% Woolworths faulty chicken discovered
Air New Zealand Limited 2.870 -4.333% Market conditions applied
Genesis Energy Limited 2.440 -2.400% Market conditions applied
Portfolio Average -2.241%
Name of the Company Stock price at end of the week % Change News (Primary reason)
Wesfarmers Limited 31.950 -0.405% Analyst viewing shares progress
Woolworths Group Limited 29.640 1.160% Increasing demand from customers
Air New Zealand Limited 2.990 4.181% Reduction in oil prices
Genesis Energy Limited 2.450 0.410% FY19 Interim Result
Portfolio Average 1.337%
Week 1 23 November 2018
Week 2 30 November 2018
Week 3 07 December 2018
Week 4 14 December 2018
Week 8 11 January 2019
Week 5 21 December 2018
Week 6 28 December 2018
Week 7 04 January 2019

INTERNATIONAL FINANCE
3
The above figure indicates the overall returns that have been generated by the selected
stocks over the period of eight weeks. There is specific analysis provided regarding the price
actions of the stocks, as it is reviewed with relevant news. The portfolio average returns of
each week are also displayed in the above figure providing the insight on the return that was
generated from the investment. The created portfolio depicts the overall returns that can be
generated from an investment.
1.b) Analysing the performance of the portfolio:
Stock 16 November 2018 11 January 2019 Return
Wesfarmers Limited 31.590 31.950 1.140%
Woolworths Group
Limited
28.760 29.640 3.060%
Air New Zealand Limited 2.800 2.990 6.786%
Genesis Energy Limited 2.380 2.450 2.941%
Returns from the portfolio 3.482%
The analysis has detected that the share of Air New Zealand has provided the highest
return, while Wesfarmers Limited has produced the lowest returns. The returns from the
portfolio in eight week are detected in the above calculations, where the investment provided
returns of 3.482%. The performance of the portfolio is considered adequate, as the returns
have been normal during the period. Investors use adequate calculation to determine the
overall stock, which can increase their exposure in the capital market. The current exposure
in the portfolio has provided adequate return for an investment of 8 weeks.